Ero Copper (TSX: ERO; NYSE: ERO) updated its Xavantina underground gold operations in central Brazil, raising proven and probable reserves by 19% and measured and indicated resources by 26% over last year’s estimates.
Total proven and probable reserves across Xavantina’s three main veins total 1.4 million tonnes grading 9.71 grams gold per tonne for 459,200 contained oz., marking a year-on-year increase of 74,500 contained ounces, Ero reported Tuesday.
Measured and indicated resources increased by 123,500 oz. over 2023 to 1.6 million tonnes grading 10.99 grams gold for almost 598,000 contained ounces. Total inferred resources grew to 632,000 tonnes at 10.64 grams gold for 216,200 contained oz., 48% increase over last year.
CEO David Strang said he is excited about Xavantina’s “untapped potential both near the mine and regionally.”
The exploration program at the Xavantina operations “continues to deliver exceptional results,” he said in a release. “When we acquired this asset in 2016, it had no mineral reserves, no mine life, and annual production of just 25,000 ounces.”
The company’s strategy is focused on extending mine life and finding new vein structures to expand mine and mill feed and fill the mill’s capacity of up to 300,000 tonnes per year, he said.
Most of the gains at Xavantina this year were in the Santo Antônio vein, where proven and probable reserves increased by 24%, and measured and indicated resources grew by 31%.
Xavantina produced 59,222 oz. of gold last year at all-in sustaining costs (AISC) of $957 per ounce. Its guidance this year forecasts 60,000 to 65,000 oz. at an AISC of $900 to $1,000 per ounce.
The mine is located in southeastern Mato Grosso State, about 670 km east of the state capital of Cuiabá, which is about 1,070 km west of the national capital Brasilia.
Ero shares gained 1% to C$21.59 apiece on Tuesday morning in Toronto, valuing the company at C$2.2 billion. Its shares traded in a 52-week range of C$17.10 to C$32.89.
